Question : The cost of apples is increased by 20% and then decreased by 20%. What is the net percentage decrease?
Option 1: 4%
Option 2: 3%
Option 3: 5%
Option 4: 6%
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Correct Answer: 4%
Solution : Let the price of apples be Rs. 100. After the increase, the price = 100 × 120% = Rs. 120 After the decrease, the price = 120 × 80% = Rs. 96 ⇒ Decrease = 100 – 96 = Rs. 4 Net percentage decrease = $\frac{4}{100} × 100=4\%$ Hence, the correct answer is 4%.
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